AerCap Holdings N.V.

Welcome to the Air Cap Holdings NCQ1 2024 Financial Result. Today's conference is being recorded and a transcript will be available following the call on the company's website. At this time, I'd like to turn the conference over to Joseph McGinley, Head of Investor Relations. Please go ahead, sir.

Thank you, Operator, and hello, everyone. Welcome to our first quarter 2024 conference call. With me today is our Chief Executive Officer, Inget Kelly, and our Chief Financial Officer, Pete Hughast. Before we begin today's call, I would like to remind you that some statements made during this conference call, which are not historical facts, may be forward-looking statements. Forward-looking statements involve risks and uncertainties that may cause actual results or events that differ materially from those expressed or implied in such statements. AIRCAP undertakes no obligation to other than that imposed by law, to publicly update or revise any forward-looking statements to reflect future events, information, or circumstances that arrive after this call. Further information concerning issues that could materially affect performance can be found in AirCap's earnings release dated May 1, 2024. A copy of the earnings release and conference call presentation are available on our website at aircap.com. This call is open to the public and is being webcast simultaneously at aircap.com and will be archived for replay. We will shortly run through earnings presentation and will allow time at the end for Q&A. As a reminder, I would ask that analysts limit themselves to one question and one follow-up. I'll now turn the call over to Angus Kelly.

Thank you for joining us for our first quarter 2024 earnings call. I am pleased to report that the AirCap platform has delivered another quarter of consistent earnings and profitability. During the first quarter, we generated $3.29 of adjusted earnings per share, up 40% over last year, an adjusted net income of $658 million. Importantly, we continued our consistent increases in book value per share, which was up 27% year-on-year to $87.47, As a result of this strong first quarter performance and the improving outlook, we are increasing our full year 2024 guidance to approximately $9.20 per share. As I mentioned on our last call, the focus of the entire AirCap management team is on maximizing value for you, our shareholders. Through earnings per share and book value per share growth, not just for an individual quarter, but for the long term. On the operational side, which underpins everything we do, the platform continues to work well, executing 152 transactions in the quarter. Demand for travel continues to rise, particularly in China, where new passenger records were set in the first quarter. Airlines in China flew almost 180 million people in Q1, including 14 million international trips, which is still 22% behind the 2019 international levels. The continued supply-demand imbalance creates significant pricing tensions where we regularly have multiple bidders for available aircraft. On the used aircraft side, we signed lease agreements for A320 COs, Embraer E1s, 737 freighters, and 777s. On the new side, demand remains robust. We are sold out entirely on 787s, A330neos, Embraer E2s, and Airbus A220s, with enviable slots on the 320neos and 737 MAX programs. Frankly, The most challenging issue we face is trying to predict with certainty the month or even quarter that these new aircraft will actually deliver from the manufacturers. Turning to the engine business, it continues to present opportunities reflected in healthy activity in the period, and I look forward to discussing this subject with you next week. Finally, on the helicopter side, we saw good demand in the first quarter for our Sikorsky 92s. where we signed up extensions and new agreements with a number of operators. In summary, this was another strong quarter for AirCap. Demand remains robust, cash generation is strong, and earnings per share grew by over 40% year on year. The company and industry continues to benefit from a positive macro backdrop, and we are well positioned to take advantage of it for the years to come. With that, I will hand it over to Pete before we have the Q&A session. Thank you.